El Salvador is preparing to launch Bitcoin-only banks, furthering President Nayib Bukele’s ambitious adoption strategy. ONBTC confirmed the move on X, calling it a major step for the “Bitcoin country.”
While details remain scarce, the idea is to create banks that operate primarily with Bitcoin, potentially revolutionizing access to financial services. Nearly 70% of Salvadorans are currently unbanked, and BTC-based banking could offer them new opportunities for savings, payments, and loans.
The initiative is linked to Bukele’s earlier Bank for Private Investment (BPI) proposal, which aims to allow banks to operate under lighter regulations, partner with foreign institutions, and handle larger loans. BPIs would require at least $50 million in capital and two shareholders, with the option to register as its service providers.
Supporters like Max Keiser and Cathie Wood see this as a potential boost for the nation’s economy, while the IMF warns about Bitcoin’s volatility and lack of consumer safeguards.
Since legalizing it in 2021, El Salvador has launched the Chivo wallet, issued Bitcoin bonds, and invested in geothermal-powered BTC mining. With reserves now worth $747 million and its July high of $123K, the country is doubling down on becoming a global crypto hub.
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